Georgian authorities uncover group behind cryptocurrency scam; victims’ losses total €620,000.

Georgian authorities said 11 people were detained on suspicion of misappropriating funds under the pretext of cryptocurrency trading.

According to Sputnik, citing the Georgian Interior Ministry, the fraudulent group began its operations in spring 2019. According to investigators, the perpetrators misappropriated funds belonging to foreigners interested in cryptocurrency trading.

The scheme involved linguists who contacted victims and offered to purchase cryptocurrency.

The suspects registered clients remotely on a designated website, after which the clients allegedly purchased cryptocurrency. However, the funds went to the fraudsters’ accounts.

The victims included residents of many countries, including Germany, Austria, China, the Netherlands and Norway. The preliminary amount of losses is €620,000.

The police seized the group’s leader’s bank account, as well as vehicles and property purchased by the suspects to launder funds.

The suspects face nine to twelve years in prison.

Earlier in Ukraine, law enforcement detained suspects in an international fraud ring that extorted money from victims on the pretext of investments in cryptocurrencies, securities and other assets.

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